Digi has confirmed its intention to enter the Spanish market, with a IPO in Madrid which would be structured through the placement of a minority stake. The plan being discussed in the sector points to a range of between 25% and 30% of the capital and a timeline geared towards 2026 springsubject to market conditions.
The operator insists that it does not intend to lose control of its national subsidiary and that the objective of the operation is to strengthen its financial structure to support its expansion. Spain already accounts for around 43% of the group's revenuewith a competitive pricing model that has boosted its customer base and, at the same time, demands significant investment.
Scope of the operation and banks involved
According to sources involved in the process, the IPO design includes a combination of OPS and OPV (issuance of new shares and sale of existing shares). Demand would primarily come from institutional investors, although Digi is considering opening a retail section in a complementary manner.
- Indicative size: between 25% and 30% of the capital.
- Schedule: first months of 2026, with the goal of closing in spring.
- Demand: institutional focus, with the option of retail participation under study.
- Advisors: Rothschild as a financial advisor; Barclays, Santander and UBS as global coordinators.
The company has already begun working with its banks to refine the scope and structure of the placement, a key step in calibrating the Digi Spain rating and the balance between new shares and existing shares that are ultimately offered.
What will he be seeking funds for?
The destination of the resources is clear: to accelerate the deployment of own fiber and 5G network and reduce dependence on the long-term wholesale agreement with Telefónica. The roadmap anticipates investments of up to 2.000 billion euros until 2030concentrated in areas with high user density.
That investment effort has raised the group's debt to nearly 1.714 millionThis pushed financial expenses up (from €50,4 million to €97,9 million in nine months). To alleviate the debt, Digi issued bonds in October. 600 million in bonds maturing in 2031with which it paid off previous debt (€450 million due in 2028) and covered short-term obligations. The debt-to-EBITDA ratio remains around 3 timesa threshold that the sector is watching closely.
Effects on the sector and valuation of the subsidiary
The deal would consolidate Digi as fourth independent operator In Spain, this would for now rule out a sale and preserve price competition in the market. Furthermore, the IPO would set a market reference for the subsidiary, which analysts place in the range of 2.500 billion euros including debt, a relevant milestone for future corporate decisions in the sector.
However, listing a stock comes with commitments: a increased pressure from investors Regarding short-term profitability and a higher level of transparency, with more detailed quarterly information, this scrutiny could, if necessary, strain the aggressive tariff policy.
Doing business in Spain: customers, prices and employment
In commercial terms, Digi maintains an exceptional rate of acquisition: it exceeds the 10,2 million lines and earned 2,3 million in the last year. It leads in mobile number portability, with 1,184.000 net new registrations due to a change of operator between January and September, at the expense of operating with the lower ARPU of the market (7,8 euros per line, 10,4% less year-on-year).
That strategy translates into increased revenues from 19% through September and an EBITDA that grows by 8%, above rivals such as Telefónica Spain (1,7%) o MasOrange (3,7%)While Vodafone Spain It continues to post losses. In terms of employment, the company has already added more than 10.000 workers and ranks as the second largest operator in terms of direct employment, compared to a sector in which Telefónica is finalizing a ERE of 6.000 people and where outsourcing of services that Digi maintains in-house is common.
Will there be a retail section, and what role does the brand play?
The company is considering adding a retail section to small investorsThis is an uncommon option in Spain since the Bankia case and one that the CNMV (Spanish National Securities Market Commission) is closely monitoring. In the last decade, Aena reserved 5,71% and Opdenergy 4% for individual investors in their exits; in Europe, Porsche allocated 7,7% in 2022. Digi, for now, neither confirm nor deny This is the way to go, and remember that the process is in an early stage.
The brand's recognition works in favor of that possibility: with more than 10 million customers, established sponsorships in football (Athletic Club, Rayo, Osasuna, Alavés, Valladolid, Deportivo, Cádiz, Burgos, among others) and presence in eSports And with outdoor advertising, the firm could broaden its demand base and gain negotiating leverage when setting prices.
Calendar and next steps
After announcing its intention on November 14, the group is working on finalizing the terms: the percentage to be placed, the combination of a stock market offering (SMO) and a private equity offering (PO), a possible retail tranche, drafting the prospectus, obtaining authorization from the CNMV (Spanish National Securities Market Commission), and finally, the demand forecasting period. The target timeframe is set at... first months of 2026, with the aspiration of debuting in spring if the markets cooperate.
The photograph that the process leaves behind is that of an operator who is looking financial oxygen to continue investing, without relinquishing control of its subsidiary and prepared to submit to market scrutiny. If the market supports it, the IPO will strengthen its competitive position, establish a valuation benchmark, and provide the tools to sustain the rollout of its own network that underpins its strategy in Spain.
